There’s one very effective way to maximise the chances of being approved for a mortgage and that’s by hiring the services of professional mortgage brokers. These industry experts are at the forefront of customer service and mortgage management and this is why so many home loan applicants in and around Australia choose to hire them.
But what exactly is a mortgage broker and what do they do for their clients?
Well, the first thing to consider is that brokers have been around for decades. In the past, when borrowing from a bank was often the only way for a person to purchase their own property; brokers were typically employed to find the best lenders and put applications forward on behalf of their clients. These days, they offer very similar services; albeit it in a far more technological way.
Modern day mortgage brokers
As most banks and lenders make their services available online it can be a very straightforward task for a broker to access their own databases, source the latest interest rates and then compare them; to find the best deal for their clients. Once a preferred deal has been found, the next step is for the broker to approach the lender and put forward a notice of interest.
Many brokers will have worked with particular lenders for years and during this time, they may have developed a professional relationship with them. This means that any negotiations can bypass frontline advisors and be taken directly for approval by committees and other higher-ranking agents. At this stage, the lender will usually put their requirements forward and these will typically be proof of financial income, identifying documentation and a bill or two to prove that the applicant is paying into a professional organisation.
Without the help of a broker, an applicant will be responsible for arranging, preparing and submitting these documents – as well as taking care of the earlier tasks such as finding the best deals or negotiating with a lender. This entire process can be very stressful and with no guarantee that the end result will yield an approval.
A summary of what brokers can do for their clients
When hiring a broker, it’s possible to minimise the responsibilities associated with a whole host of tasks. They will be able to source the best deals, correspond with potential lenders, negotiate prices and then take care of all document submissions on behalf of a client. A broker will receive a certain percentage of what their client pays back to the bank in the form of commission, and this often reduces (or entirely eliminates) their service charges.
By hiring a broker, an applicant will have access to exclusive deals only made available to affiliates of specific lenders. Considering that a loan will need to be repaid over several years, if not decades; the financial savings could certainly be considered substantial. Not only will a broker take care of the majority of responsibilities required of a mortgage application; it will also be their job to see to any concerns that a client has – making it an option to bypass advisors from the lender and work directly through the broker themselves.